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    CRM Writing Material

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    Chetna Singh
    Building customer loyalty programs is important for several reasons: 1. It increases profits and sales success by retaining existing customers who spend more over time and drives customer referrals. 2. A well-designed loyalty program retains customers, attracts new customers, and increases customer lifetime value. Repeat customers spend more than new customers. 3. Loyalty programs build emotional connections with customers through rewards and a sense of community, keeping customers engaged with the brand.

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    CRM Writing Material

    Uploaded by

    Chetna Singh
    14 views3 pages
    Building customer loyalty programs is important for several reasons: 1. It increases profits and sales success by retaining existing customers who spend more over time and drives customer referrals. 2. A well-designed loyalty program retains customers, attracts new customers, and increases customer lifetime value. Repeat customers spend more than new customers. 3. Loyalty programs build emotional connections with customers through rewards and a sense of community, keeping customers engaged with the brand.

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    Building customer loyalty programs is important for several reasons: 1. It increases profits and sales success by retaining existing customers who spend more over time and drives customer referrals. 2. A well-designed loyalty program retains customers, attracts new customers, and increases customer lifetime value. Repeat customers spend more than new customers. 3. Loyalty programs build emotional connections with customers through rewards and a sense of community, keeping customers engaged with the brand.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
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    14 views3 pages

    CRM Writing Material

    Uploaded by

    Chetna Singh
    Building customer loyalty programs is important for several reasons: 1. It increases profits and sales success by retaining existing customers who spend more over time and drives customer referrals. 2. A well-designed loyalty program retains customers, attracts new customers, and increases customer lifetime value. Repeat customers spend more than new customers. 3. Loyalty programs build emotional connections with customers through rewards and a sense of community, keeping customers engaged with the brand.

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    Why is it important to build details loyalty program for customers?

    Customer loyalty increases profits, improves sales success and allows for sustainable
    growth.
    A well-designed and well-executed loyalty programme can help you retain existing
    customers, attract new customers, reduce turnover and drive profits. The average repeat
    customer spends 67% more in month 31-36 than they spend in month 0-6. 95% of companies
    report that their loyalty members spend more annually than non-members, and almost 50% of
    consumers actively admit that this is true about themselves. 
     Loyalty programmes build an emotional connection
    Loyalty programmes drive sales and increase customer lifetime value. On the most basic
    level, that is done through incentives. The emotional connection that loyalty programmes
    foster can be even more important.  
    A loyalty programme will help build emotional commitment through repeat behaviour..
    Curating a host of third-party promotions (access to restaurants, cinemas, spas and retailers)
    can create a community and ‘lifestyle’ perception that will help emotionally connect
    customers to your brand. If you can partner this with personalisation, the impact is even
    larger.   
    For a great example, take NikePlus — Nike’s mobile loyalty programme. 

     Repeat customers have a high ROI


    It costs five times as much, on average, to acquire a new customer than to retain an existing
    one. Existing customers are 50% more likely to try a new product and spend 31% more per
    purchase than new customers. Although marketing efforts aimed at reaching potential
    customers are essential for growth, retaining customers is where the long-term value resides.
    Incentivising customer loyalty via a programme can help you avoid high churn rates
    and hold onto high-value customers.

     Loyalty helps you reach new customers


    Loyal, satisfied customers are one of your most powerful marketing tools. In the age of
    eCommerce and online review websites, positive customer word-of-mouth is essential to
    attracting new customers. With a well-designed loyalty programme, you can gamify and
    incentivise referrals, rewarding customers who invite new shoppers. although customer
    acquisition has historically been expensive, if you have the right loyalty programme and
    advocacy system in place, expanding your customer base has never been cheaper. 
    .
     Loyalty programmes deliver customer insights 
    Loyalty programmes should be designed to offer maximum benefit to your customers, but
    also to your brand. Digitising your reward programme means you can view real-time data
    about how your customers engage with your programme and your brand as a whole. Access
    to this information enables you to develop innovative and effective strategies for improving
    your loyalty programme, but also your brand on the whole. 

    2 - How to create loyalty program for customers who are already existing
    These five attributes seem to be in common among successful loyalty programs

    1. Simplicity. Customers are shielded from the program’s complexity. Customer receive


    simple options and rules to follow.

    2. Global. The global nature associated with loyalty programs has sparked multi-partner,
    coalition programs and loyalty networks (see below). Coalition loyalty programs offer
    a wide range of marketing advantages (e.g. shared marketing, lower costs, cross-
    partner customer acquisition) which will also become greatly more important over
    time. Loyalty networks are becoming increasingly popular because of the sheer range
    of partners they offer. Loyalty networks take full advantage of the new international
    expansion trend, with many already having partners in multiple territories.

    3. Connected to CLV. Successful loyalty program drive customer lifetime (CLV).  In


    order to enhance CLV you need to know your customers’ needs and wants. Marketers
    are now looking for predictive analytics to help identify and better understand
    customers’ wants, needs and priorities. An attribute of a successful loyalty program
    should be the ability to gather the data to support the development of predictive
    analytics.

    4. Relevant rewards. Rewards are a critical attribute of a successful loyalty program.


    Rewards differentiation is blurring. The changing demographics are driving changes
    in rewards.

    5. Data:  Loyalty programs should provide valuable data that enable you to improve
    your marketing mix. For example, it should also help you formulate pricing strategies.
    Data from a loyalty program should help you determine new products and services.
    And a successful loyalty program can be used to cross-sell and up-sell to customers.
    A loyalty program provides a good way to study the effects of changing prices,
    offering new products or product offers.

    ALSO REFER SLIDES SHARED


    There are essentially four technology teams within Flipkart as an organization:

    Website development and maintenance Data Analytics/Business Analytics (Data mining and
    warehousing) ERP (CRM comes here) Platform Management (integrating sales force
    automation and managing forward/backward integration with other technologies)
    Flipkart defines its website management and development roles with the intention of
    achieving: Scalability: Development must be scalable to accommodate more traffic and more
    orders Availability/downtime: 0 downtime, 100% availability for enhanced end user
    experience.
    Social Experience: Flipkart continues to design its website with the intention of providing
    opportunities for customers to interact in a group and to tap this group behavior for more
    targeted results.
    Analytics: The analytics team is not only concerned with data mining and understanding
    consumer buying preferences, but the analytics team engages in understanding vendor
    management, supply chain management and managing the logistics.

    WRITE FROM SLIDES


    RECOOMENDATION

    Flipkart needs to minimize its dependency on key suppliers, distributors and other partners whose
    services are not up to the mark and is impacting flipkart’s performance. Further strengthen its
    backend-warehouses, logistics, delivery network etc to cut down costs in order to reap profits in the
    cut throat competitive scenario. Improve personalization features on its website to engage consumers
    and keep them from drifting away to other ecommerce sites. Improve search options by introducing
    advanced search options.  It must resolve unsatisfied customer issues that has brought about negative
    social branding on networking sites and can hamper the very objective of flipkart of providing quality
    customer service. It must provide customized delivery dates where the user has the freedom to select
    the date he wants the good to be delivered on. Same day shipping is another exclusive feature which it
    can introduce to attract more consumers, however, at this point of time it can incur huge expenditures
    to deliver the same.

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